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'Nadella Effect' makes Ballmer US$2.8 billion richer

Gregg Keizer | July 23, 2014
And since Thursday's downsizing, CEO Satya Nadella has an extra US$1.3 million in his portfolio.

Wall Street rewarded Microsoft for the job cuts, pushing the price up 5.5% between Thursday morning and yesterday's closing bell. That increase alone bumped up Ballmer's portfolio by $783 million, Gates' by $747 million, Turner's by $3.2 million and Nadella's by $1.3 million.

Depending on the results of Microsoft's second-quarter earnings call later today, the holdings of Ballmer, Gates, Nadella and other Microsoft executives and employees could rise or fall.

Ballmer, for one, must be hoping that the share price will climb even higher.

According to reports by a href="http://espn.go.com/los-angeles/nba/story/_/id/11244868/donald-sterling-steve-ballmer-friendly-talk-los-angeles-clippers">ESPN and USA Today, Ballmer met Monday afternoon with Donald Sterling, co-owner of the Los Angeles Clippers, to talk about the pending $2 billion sale of the NBA team.

Ballmer, who struck the record deal for the team with Sterling's wife Shelly in May, had what ESPN described as a "friendly conversation" of 90 minutes with Donald Sterling at his home Monday.

Donald Sterling is embroiled in a state court battle with his wife over the sale of the Clippers. He has contested her right to sell the franchise, while she and her lawyers have argued that he was mentally incapacitated.

Ballmer and Donald Sterling failed to reach a settlement during their discussion, the sports network said, and the court case will resume today in Los Angeles. Shelly Sterling is again expected to take the stand.

NBA commissioner Adam Silver is trying to force the sale of the Clippers after racist comments Donald Sterling made in a private conversation went public earlier this year. Sterling was also banned for life from the league and fined $2.5 million.

Donald Sterling has claimed that the Clippers are worth much more than $2 billion. In his court testimony two weeks ago, Sterling said he could get between $2.5 billion and $5 billion for the team.

Ballmer's new-found $2.8 billion may come in handy.

Nadella effect
The "Nadella Effect" has also increased the value of the CEO's share holdings by 23% since Feb. 3, the day before he took over, to $24.8 million as of Monday. (Data: SEC.) 

 

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